MCX –SX stock Exchange, promoted by Multi Commodity Exchange and Financial Technologies, had been fighting legal battle from four years to get approval of SEBI to start stock trading on its stock exchange, now finally got the nod to launch stock trading platform.
On Tuesday, when the issue came in Supreme Court, without wasting time, SEBI gave permission to MCX-SX to perform as a full-fledged stock exchange, deal trading in equity and futures & option on equity, interest rate futures and wholesale debt segments.
Interestingly, report said, promoters of MCX-SX, MCX and FT will allow performing operations in foreign currency derivatives, adding more tradable products in Indian market, better trading technology with execution at low risk and cost.
Granting its permission, capital market regulator SEBI made compulsory for MCX and FT to cut down their shareholding upto 5 per cent within 18 months in exchange from the date of approval.
Further, the promoters will also ask to cut off their entitlement to equity or rights over equity from instruments such as warrants to 5% within 3 years, along with 5% limit on combined voting rights of FT and MCX in MCX-SX’s equity capital.
Ashok Jha, chairman, MCX-SX on SEBI approval told with media persons, “We will continue with our efforts of systematic development of markets and the financial market ecosystem,” he adding, this would offer better growth of all asset classes.
“The new regulations have provided the much-needed level playing field,” Jignesh Shah, vice-chairman, MCX-SX said in a statement.
Now, its time for MCX-SX to compete for investors’ money with market’s two other leading bourses, BSE and NSE. However, NSE, India’s largest leading stock exchange, is the major hurdle of MCS-SX.
